If the value of the principal today is $10,000 and the interest rate is 21.22%,what is the total compound interest income at the end of six years?
A)$21,728.22
B)$25,567.43
C)$20,000.54
D)$45,067.22
E)None of the above.

Question

Quizplus · Accepted Answer

The correct answer is A. The total compound interest income at the end of six years is $21,728.22. This is calculated using the formula A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = $10,000, r = 21.22%, n = 1 (since the interest is compounded annually), and t = 6. Plugging these values into the formula, we get A = $21,728.22.

If the Value of the Principal Today Is $10,000 and the Interest